I’ve found in the past that trawling through the FTSE 100 index to find high-quality companies to invest in can be very fruitful indeed. With a desire for even more growth, I’ve found these two FTSE 100 shares to consider adding to my portfolio in July. Let’s take a closer look.
Endeavour Mining
Shares of Endeavour Mining (LSE:EDV) have increased by about 10% in the past year, but are down 4% in the last month. Currently trading at 1,747p, the share price has performed comparatively well given the broader economic environment.
The company – a gold miner in the Ivory Coast, Burkina Faso, and Mali – has been profitable over the past two years. In 2020, the firm posted a pre-tax profit of $219m. By 2021, this had grown to $424m.
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In an update for the three months to 31 March, the business increased gold production by 14%, compared with the same period in 2021.
Furthermore, it had all-in sustaining cost forecasts of well below $1,000 per ounce of gold for 2022. Considering that gold is currently trading for $1,822 per ounce, the business clearly has the potential to be profitable over the long term. However, I’m always aware that past performance is not necessarily indicative of future performance.
It’s also expanding its presence into Senegal by investing $290m in mining operations in that country. This has the potential to produce an additional 400,000 ounces of gold per year.
There’s always the risk, however, that future pandemic variants halt mining. In addition, the firm may find its balance sheet squeezed from wage inflation.
Standard Chartered
Standard Chartered (LSE:STAN) has seen a 27% rise in its share price over the past year, falling only 4.6% in the past month. The shares currently trade at 604p.
The banking and financial services firm showed resilience following the pandemic. For 2020, its pre-tax profit amounted to $1.6bn. By the following year, this had risen to $3.3bn.
Investment bank Jefferies recently placed a price target of 991p on shares of Standard Chartered. This is primarily because it believes the firm will announce a $500m share buyback scheme with second-quarter results.
Higher interest rates in the UK and US may also prove beneficial for the business. These rates, which could be set to rise again next month, determine how much a bank can charge for its lending and mortgage services.
While this might be good news, the risk is that surging energy bills and inflation could deter potential customers from taking on more debt.
Overall though, I think these two businesses could provide me with growth over a long period of time. While there are inevitably risks, I feel they could be good additions to my portfolio. As such, I’ll be adding both companies next month.
